Prime Minister Justin Trudeau has just announced that the Canadian government will be covering 75 per cent of wages for small- and medium-sized businesses affected by the COVID-19 pandemic. 

In a press conference today, the PM described the new payroll subsidy as part of "unprecedented investments in the economy." 

More details about the Federal payroll support plan, including how much the subsidies will cost the government, and which businesses will qualify as eligible, will be announced on Monday.

The federal government of Canada is launching a special emergency business account for small businesses that will see banks offer $40,000 government-guaranteed loans interest-free for the first year. If certain conditions are met, the first $10,000 will be forgiven.

— Harcharan Parhar (@HarcharanParhar) March 27, 2020

The government hopes that the wage support will incentivize business owners to keep their employees on payroll and prevent mass layoffs.

"Small- and medium-sized businesses are the backbone of our economy," said Trudeau. "Collectively you are the largest employers of the country." 

Justin Trudeau just announced how Canada will be supporting small businesses with payroll and the Canada Emergency Business Account #covid19Canada https://t.co/JCzckXHBOq pic.twitter.com/3yEfwC0xcU

— blogTO (@blogTO) March 27, 2020

Payroll support is part of the government's three-pronged plan for economic relief across the country, including access to significant credit for businesses and the Canada Emergency Response Benefit (CERB), which will provide eligible Canadians with $2,000 per month for up to four months. 

I have been calling on the federal government to increase the wage subsidy for small and medium-sized businesses. These people are the backbone of our economy and this time has not been easy on them. Thank you @JustinTrudeau - this support will protect thousands of jobs.

— Doug Ford (@fordnation) March 27, 2020

Last week, Trudeau also announced a six-month interest-free moratorium on the repayment of Canada Students Loans, which will cost the government around $190 million when it's implemented in early April.